Group Risk Crop Insurance Premiums to Increase

Some observers are now questioning the advisability of using Group Risk Income Plan (GRIP) crop insurance policies in 2007, says Gary Schnitkey, a University of Illinois Extension farm financial management specialist.

GRIP is a crop insurance product that uses county yields in calculating revenue. It differs from other revenue products that use farm yields in calculating revenue.

“GRIP premiums will be much higher in 2007,” says Schnitkey. “A GRIP product that costs between $20 and $25 in 2006 will cost in the $40 to $45 range in 2007.

“When looking at risk position, farmers in more vulnerable positions should choose farm-level products over GRIP,” he says.